1 Green Flag for Nvidia in 2023, and 1 Red Flag
If you had to choose a stock market winner this year, it'd be hard to overlook Nvidia (NASDAQ: NVDA). The company's shares have skyrocketed roughly 210% since Jan. 1 as the company became a key player in artificial intelligence (AI). Nvidia is one of the biggest producers of graphics processing units (GPUs), which are crucial to developing AI software. The company's dominance in GPUs has allowed it to profit substantially from the boom in AI.
Demand for these chips is rising fast, strengthening Nvidia's long-term outlook. However, a recent bull run has made its stock more expensive than many of its peers. Countless companies have expanding positions in AI, suggesting it might be worth looking elsewhere to back the high-growth sector.
So, before going all in on Nvidia's stock, here is one green flag and one red flag for the company in 2023.
Source Fool.com
